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PPI scandal continues to fuel bank complaints

We compare the FSA's complaints figures from 2010 and 2011 to show which banks are doing better and which are failing.

 
PPI scandal continues to fuel bank complaints

Banking giants Barclays (BARC.L) and Lloyds (LLOY.L) have once again topped the City regulator's customer complaints table.

Every six months the Financial Services Authority (FSA) pulls together complaints figures for all the banks and publishes them on its website – today it revealed figures for the second half of 2011.   

Here we look at how the number of complaints received by the big banks in the second half of 2011 compares with the figures from 2010.

Total number of new complaints

Bank Complaints H2 2011 Complaints H1 2011 Complaints H2 2010 Complaints H1 2010
Bank of Scotland 206,281 130,469 123,477 115,638
Barclays 281,484 251,563 276,315 245,348
HSBC 116,891 98,150 80,794 81,271
Lloyds 240,923 181,907 175,892 146,846
Nationwide 31,237 30,934 51,653 90,208
Natwest 188,450 147,109 118,765 84,289
RBS 103,385 68,414 53,806 38,138
Santander 177,257 168,888 195,475 244,978

The total number of complaints is up 21% compared with the previous six months, the FSA said. And as you can see above, not one of the big banks saw any kind of decline.

According to the FSA the spike in complaints is largely a result of the recent payment protection insurance (PPI) mis-selling scandal, with complaints about PPI soaring 85% to 977,510.

Major banks such as Barclays, Lloyds, HSBC (HSBA.L), RBS (RBS.L) and Santander have put aside a combined total of more than £6 billion to deal with the millions of PPI complaints which are still rolling in.

Number of banking complaints

Bank Complaints H2 2011 Complaints H1 2011 Complaints H2 2010 Complaints H1 2010
Bank of Scotland 55,316 50,881 62,371 68,280
Barclays 146,316 162,611 205,151 195,956
HSBC 65,441 69,149 58,392 65,236
Lloyds 51,586 67,836 89,811 103,686
Nationwide 17,892 22,222 43,663 84,474
Natwest 93,893 96,205 87,271 67,638
RBS 35,361 33,660 30,218 24,100
Santander 138,225 139,386 165,052 216,100

Despite an overall rise in complaints, the number of complaints received about banking specifically fell significantly during the same period, with all major banks apart from Bank of Scotland and RBS reporting a decline.

However, just one month ago the Financial Ombudsman Service (FOS) – which reports the number of disputes which could not be resolved between the business and the individual – revealed that it received an increased number of banking complaints for all major banks apart from Santander.

3 comments so far. Why not have your say?

Rob Walker

Mar 28, 2012 at 18:47

The metrics would make some sense if we knew the comparable number of customers / accounts etc. with each bank. Can't the FOS come up with something better than this? If all banks were consistently poor then the one with the most customers would get the most complaints and would be the one subjected to cheap jibes about 'Topping the customer complains table'.

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William Phillips

Mar 28, 2012 at 23:17

I'd like to know how my bank, the Co-op, makes out, esp. in the light of its possible takeover of Lloyds branches and the regulators' doubts about its ability to handle the sudden tripling of its network and accounts migration.

The Co-op has a 'good guy' image which so far I have found justifiable.

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S G

Mar 29, 2012 at 08:59

An interesting fact would be to know how many of these complaints are justified, and how many are just people are jumping on the band wagon. I have had numerous loans and Credit Cards over the years, and always turn PPI down. Howeve out of about 6 friends who did have PPI on loans and credit cards, only one was told, he need PPI to take the loan, the other 5, just see it as a chance to get their money back plus extra...... Yet they all say if anything happened they would have happily put in lagitamate claims

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